What is Capability Statement?
A concise marketing document used by contractors to summarize their qualifications, experience, and differentiators for government buyers.
A capability statement is a one-to-two page document that serves as a business resume for government contractors. It is the most commonly requested marketing collateral in government contracting — agency buyers, prime contractors, and small business offices expect contractors to have one ready.
A standard capability statement includes: company overview and mission, core competencies (top 3-5 service areas), past performance highlights (2-3 relevant contracts), differentiators (what sets the firm apart), company data (NAICS codes, CAGE code, UEI, set-aside certifications, contract vehicles), and contact information.
Capability statements are used at industry days, networking events, and when responding to sources-sought notices. They should be tailored to the target audience — a capability statement for a DoD buyer should emphasize different experience than one for a civilian agency.
Related Terms
Past Performance
A contractor's record of performing on previous contracts, used by agencies as a key evaluation factor in awarding new contracts.
NAICS CodeA standardized numeric code that classifies businesses by industry sector, used by federal agencies to categorize contract opportunities.
UEI (Unique Entity Identifier)A 12-character alphanumeric identifier assigned to every entity registered in SAM.gov, replacing the former DUNS number.
CAGE CodeA 5-character identifier assigned by the Defense Logistics Agency to entities that do business with the federal government, used as the universal contractor ID across DoD and other agency systems.